you have to honour the deal
if you fail to execute sale deed buyer will file suit for specific performance
seek injunction restraining you from selling the property
Purchaser not willing to give extra amount demanded and is physical and legal threats.
Hello Team, The Lender is asking for more money than what was agreed during Sale Agreement. The Purchaser is not budging but is asking to close the deal with the amount as per Sale Agreement. The Lender is from a decent family background with ethical values and the reason for him/her asking more amount is that he has been fooled by Brokers to settle for a lesser price with the vendor and the vendor at the time of signing the agreement was occupied with critical family medical emergencies and had not put in place due diligence on his/her part and has settled for a lesser amount at the time of agreement. Now the Purchaser is threatening with physical muscle power and also wants to fully use legal options available at his disposal by putting a board near the property that it has being sold and also issuing legal notice The Lender wants to stick to his/her stand that he/she is at Loss if he/she sells the property at the agreed amount as per the sale-agreement and wants the deal to be canceled with token advance amount returned or the purchaser to agree with the newly demanded amount. What are the legal options available at the disposal of the Lender? The agreement was done in the month of June-2023 and its validity is 3 months.
Asked 8 months ago in Property Law
Religion: Hindu
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11 Answers
Legally seller has no option but to agree on same amount. Just make sure don't give any denial in writing or message.
Complain to police to encroachment and reply of the notice to be very clever. Straight denial will strengthen purchaser position.
Impose cancellation due to purchaser part.
A sale deed can be cancelled unilaterally through an appropriate petition before the competent court by one of the party to the deed praying it to be cancelled and the reasons thereof. If both the parties are consenting to the cancellation, then it can be done jointly before the competent officer.
For more information, I need the details of the sale agreement and what are the terms and conditions contained therein.
Thanks and Regards.
It is presumed that it is an unregistered sale agreement and the time limit is three months only.
Hence let the vendor remain silent till the expiration of the sale agreement period after which he can notify the buyer that the sale agreement is cancelled due to expiration of the sale agreement. He can then offer to return the advance amount received.
As it is an unregistered sale agreement canot be enforce, however the court may pass an order to return the advance amount with interest from the date of receipt of the amount.
Hi, Normally what was agreed in the Sale Agreement was abide by the both the parties. But it is different situation. If you want you can cancel the deal while issuing the legal notice through advocate in terms of the Sale Agreement.
If the lender believes that the purchaser is not adhering to the terms of the sale agreement, the lender's attorney could issue a legal notice to the purchaser, outlining the lender's position and the potential legal consequences of breaching the agreement. If the lender wishes to enforce the terms of the sale agreement, they could potentially file a lawsuit for "specific performance." This legal remedy seeks to force the other party to fulfill their contractual obligations, which, in this case, could mean completing the purchase at the agreed-upon price.
If the purchaser is using threats of physical violence, the lender might consider involving the local police and filing a complaint about the threats.
Hi,
The Lender can file a suit for recission of agreement to sale under section 27 of the SPA alongwith the relief of permanent injunction in case purchaser want to put board or interfering with the possession in any manner, but the burden to prove that lender was defrauded or misrepresented or was under undue influence either by the purchaser or his agents would be on him.
Thanks,
It is assumed that the agreement is unregistered, with a stipulated time limit of three months. In light of this, the vendor's strategy would involve maintaining silence until the sale agreement's expiry. Subsequently, the vendor could inform the buyer of the agreement's cancellation due to its expiration, and propose the return of the initial advance payment received.
Given that the agreement lacks registration, its enforceability is limited. Nevertheless, the court might issue a directive for the reimbursement of the advance payment, along with accrued interest from the date of payment receipt.
1. A registered Agreement of sale will be valid for 3 years.
2. There may be breach of contract/penalty clauses in the agreement of sale and if the purchaser has breached atleast one clause, then you can go for cancellation of agreement of sale.
Nothing much is available at the disposal of the seller here unless and until there is a specific clause of the consequences of cancellation of the sale agreement, however legal remedies can be suggested after going through the agreement.
It will be dealt as per agreement if not settled court wil decide the fate
